Nichols Inc A) 943%
B) 9

Multiple Choice

Nichols Inc.is considering a project that has the following cash flow data.What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. $$\begin{array} { l c c c c c c } \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash flows } & - \$ 1,250 & \$ 325 & \$ 325 & \$ 325 & \$ 325 & \$ 325\end{array}$$

A) 9.43%
B) 9.91%
C) 10.40%
D) 10.92%
E) 11.47%